Abstract:

The aim of this study is to examine the impact Carroll CSR’s Pyramid on the firm’s financial performance of the top companies listed on Pakistan’s stock exchange. The financial performance is proxied by earning per share (EPS), however, the Carroll CSR’s Pyramid is undertaken as; economic, philanthropical, legal and ethical environment of the firm. Panel data analysis of top 25 firms listed on Pakistan Stock Exchange during 2011 to 2015 is carried to determine the impact of Carroll CSR Pyramid on firm financial performance. The study found that the economic and philanthropic dimensions are statistically significant impact on the firm’s financial performance. However, the legal and ethical dimensions were found statistically significant only with the help of a fixed-effects model. This study concluded that engagement in CSR activities is valuable; however, it is also not necessary that every dimension of the CSR generate the same corporate benefits in developing countries. The sequences of the layers of CSR pyramid were also revisited to attest the notion that the concept of CSR differs geographically from place to place and even time to time.

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